LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 27, 1997 TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 2498 Committee on Human Services By: Wise House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2498 ( Relating to the regulation of certain child-care facilities and registered family homes.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2498-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(284,930) to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis The bill would amend Chapter 42 of the Human Resources Code to require the Department of Protective and Regulatory Services (PRS) to search its central registry of child abuse and neglect reports before issuing or renewing a child-care license, registration, or certification. The central registry search must encompass applicants, owners, and employees of a child-care facility or family home. The effective date for the bill would be September 1, 1997. Methodolgy PRS currently searches the central registry before issuing a license, registration, or certification to determine whether the following persons have a history of child abuse or neglect: 1) the director and owner/operator of a child-care facility, and 2) anyone over 14 years old in a family home. PRS does not renew licenses, registrations, or certifications. It is assumed that PRS would issue 2,439 new child-care facility licenses or certifications each year. It is also assumed that the number of applicants, owners, and employees per facility would range from 2.1 in a small foster family home to 30 in a large child-care institution. These numbers do not include directors and owner/operators whose history is already searched. The cost to search the central registry assumes that: 1) one FTE could conduct 15,000 searches per year, 2) 2% of the searches would result in a positive match requiring additional research, and 3) 25% of the individuals with a positive match would request a waiver or file an appeal. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Change in Number Savings/(Cost) of State from General Employees from Revenue Fund FY 1997 0001 1998 ($142,465) 3.4 1998 (142,465) 3.4 2000 (142,465) 3.4 2001 (142,465) 3.4 2002 (142,465) 3.4 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($142,465) 1999 (142,465) 2000 (142,465) 2001 (142,465) 2002 (142,465) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: 530 Department of Protective and Regulatory Services LBB Staff: JK ,BB ,NM